Southey, who was appointed to the board a little over 12 months ago, has this week purchased 100,000 shares in an on-market transaction.
Final Investment Decision this year
This comes as the company advances towards a Final Investment Decision later this year at the Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.
During the transition to development Southey’s expertise is expected to be well utilised as he brings a wealth of mining, project realisation and technical experience.
Earlier this week Arafura released the results of a definitive feasibility study (DFS) which showed the Nolans project is financially and technically robust and able to support a long-life operation.
The DFS highlights Nolans’ status as the next potential scale producer of NdPr oxide outside China.
It confirms Nolans as an ultra-low-cost producer sitting in the industry’s lowest cost quartile.
The project is forecast to generate an average of $377 million EBITDA per annum over a 23-year mine life.
Nolans will encompass a mine, process plant and related infrastructure to be constructed and located on-site.
This will be underpinned by a low-risk mineral resource that has the potential to supply a significant proportion of the world’s NdPr demand.
A reserve of 19.2 million tonnes at 3.0% total rare earth oxide (TREO) and 13% phosphate was used in the DFS with an NdPr enrichment factor of 26.4%.
The project’s scale is expected to deliver significant economic and social benefits over many decades to central and northern Australia.
Peak construction workforce is estimated at 650, with a steady state operations workforce of 280.